The Main Reason That Hyperinflation Renders a Currency Worthless Is

question 73

Multiple Choice

The main reason that hyperinflation renders a currency worthless is that ________.

• A)the government cannot print money fast enough to keep up with the rising prices
• B)laws against raising prices are easily evaded
• C)reducing government expenditures is politically unpopular
• D)the government's "official" inflation rate is always a gross understatement
• E)as soon as inflation seems out of control,everyone knows that the currency will soon lose whatever value it has today

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Definitions:

Freedom Of Contract

The principle that individuals have the liberty to choose who they enter into contracts with and the terms of those agreements.

Federal Competition Act

Legislation aimed at promoting fair competition in the marketplace to protect consumers and businesses.

Violation

The act of disregarding or not complying with a law, agreement, or code of conduct.

Employee

An individual who works part-time or full-time under a contract of employment, receiving payment and benefits in return.